Business management and behavioural studies study text ICAP

ICAP Study Text P Business management and behavioural studies The Institute of Chartered Accountants of Pakistan First edition published by Emile Woolf International Bracknell Enterprise & Innovation Hub Ocean House, 12th Floor, The Ring Bracknell, Berkshire, RG12 1AX United Kingdom Email: info@ewiglobal.com www.emilewoolf.com © Emile Woolf International, November 2013 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, without the prior permission in writing of Emile Woolf International, or as expressly permitted by law, or under the terms agreed with the appropriate reprographics rights organisation You must not circulate this book in any other binding or cover and you must impose the same condition on any acquirer Notice Emile Woolf International has made every effort to ensure that at the time of writing the contents of this study text are accurate, but neither Emile Woolf International nor its directors or employees shall be under any liability whatsoever for any inaccurate or misleading information this work could contain © Emile Woolf International ii The Institute of Chartered Accountants of Pakistan Certificate in Accounting and Finance Business management and behavioural studies C Contents Page Syllabus objective and learning outcomes v Chapter Management concepts The business environment 27 Organizational structure 75 Managing change 105 Culture 121 Employee behaviour 133 Motivation 151 Leadership 175 Team management 197 10 Negotiation skills and conflict resolution 215 11 Management information systems 229 Index © Emile Woolf International 255 iii The Institute of Chartered Accountants of Pakistan Business management and behavioral studies © Emile Woolf International iv The Institute of Chartered Accountants of Pakistan Certificate in Accounting and Finance Business management and behavioural studies S Syllabus objective and learning outcomes CERTIFICATE IN ACCOUNTING AND FINANCE BUSINESS MANAGEMENT AND BEHAVIOURAL STUDIES Objective To equip candidates with the fundamentals of management and behaviuoral studies Learning Outcome On the successful completion of this paper candidates will be able to: Demonstrate an understanding of the nature of management concepts and approaches Show familiarity with the structure of business organizations, their culture and the change process Demonstrate an understanding of human behavior Demonstrate an understanding of the concepts of motivation Show familiarity with the nature and kinds of leadership Show familiarity with the nature and importance of negotiation and conflict resolution Demonstrate a basic understanding of IT based management information systems   © Emile Woolf International v The Institute of Chartered Accountants of Pakistan Business management and behavioral studies Grid Weighting Management concepts 25 Organizational process 20 Individual behavior and motivation 20 Leadership, negotiation and conflicts 20 Management information system 15 Total 100   Syllabus Ref A Contents Level Learning Outcome Management concepts Meaning LO 1.1.1 Define the term Management, its nature and purpose LO 1.1.2 State the difference between Managers and Leaders using examples LO 1.1.3 Describe the classification of management roles by Henry Mintzberg Functions LO 1.2.1 Illustrate management model and explain the functions of management LO 1.2.2 Describe the roles and skills of management Classical approach LO 1.3.1 Describe the principles of Scientific management by Fredrick Taylor LO 1.3.2 Explain the key principles of management by Fayol and Urwick LO 1.3.3 Discuss the criticism on scientific management and classical approach to management LO 1.3.4 List the characteristics of bureaucratic organizations and discuss criticism on this form of management Behavioral approach LO 1.4.1 Discuss the Hawthorne experiments on human relation approach, their significance and implications LO 1.4.2 Discuss critically the relevance of these experiments for management and organizational behaviour LO 1.4.3 Discuss Theory X and Theory © Emile Woolf International vi The Institute of Chartered Accountants of Pakistan Syllabus and learning outcomes Syllabus Ref Contents Level Learning Outcome Y including their implication and differences B Management science approach LO 1.5.1 Explain the effects of operations research in business sciences External factors – Competitors, suppliers, labour, customers LO 1.6.1 Describe the direct and indirect interactive forces which may affect the organizational environment General environment Political, legal, technological, economic, social LO 1.7.1 Explain how the external forces affect the organizational environment using examples LO 2.1.1 Explain the meaning and nature of organizational structure Organizational process Organizational structure principles of organization, different ways of structuring organization LO 2.1.2 Explain the importance of good structure and consequences of a deficient structure LO 2.1.3 Describe how the elements of organizational structure can be combined to create mechanistic and organic structures LO 2.1.4 Describe the advantages and disadvantages of mechanistic and organic structure of organization Organizational change nature of change process, resistance to change LO 2.2.1 Identify the external forces creating change on the part of organizations LO 2.2.2 Describe process of organizational change LO 2.2.3 Explain the forms of reactions to change C Organizational culture concept, dysfunctional aspect of culture LO 2.3.1 Describe organizational culture using examples LO 2.3.2 Discuss using examples the different levels of organizational culture Individual behavior and motivation Perception LO 3.1.1 Explain perception and perception process LO 3.1.2 Discuss using examples the difference between sensation and perception LO 3.1.3 Discuss using examples the internal and external factors that affect © Emile Woolf International vii The Institute of Chartered Accountants of Pakistan Business management and behavioral studies Syllabus Ref Contents Level Learning Outcome perceptual selectivity LO 3.1.4 Describe the characteristics of Perceiver and Perceived LO 3.1.5 Analyse the perceptual problems/distortions in dealing with other people like stereotyping and Halo effect etc Attitude LO 3.2.1 Define attitude and its components with reference to culture of an organization LO 3.2.2 Discuss the differences between cognitively based attitudes and affectively based attitudes LO 3.2.3 Describe the difference between implicit and explicit attitudes LO 3.2.4 Discuss cross-cultural differences in the bases for attitudes LO 3.2.5 Explain the relationship between attitude and behaviour Job satisfaction and stress LO 3.3.1 Explain using examples the meaning of job satisfaction LO 3.3.2 Identify the outcomes of job satisfaction and ways to enhance satisfaction LO 3.3.3 Describe stress and identify the causes of job stress LO 3.3.4 Explain using examples the general categories of stressors that can affect job LO 3.3.5 Identify consequences of stress and strategies in order to cope up with stress Maslow need hierarchy Model LO 3.4.1 Describe using examples motivation LO 3.4.2 Explain Maslow’s need hierarchy theory LO 3.4.3 Explain strengths and problems in applications of Maslow’s theory Herzberg’s Two-factor Theory © Emile Woolf International viii LO 3.5.1 Explain Herzberg’s two factors of motivation and major criticism thereon The Institute of Chartered Accountants of Pakistan Syllabus and learning outcomes Syllabus Ref Contents McClelland’s theory of needs Level Learning Outcome LO 3.6.1 Explain the three motives by McClelland LO 3.6.2 State the difference between intrinsic and extrinsic motives Goal setting LO 3.7.1 List the major dimensions of goal setting theory LO 3.7.2 Explain why and how goals contribute to self-motivation LO 3.7.3 Describe how to set effective goals and the problems sometimes created by goals Management by objective LO 3.8.1 Explain the basic steps of the overall performance system of MBO Self-efficacy LO 3.9.1 Define the term self-efficacy LO 3.9.2 Understand high self-efficacy and low self-efficacy 10 Reinforcement LO 3.10.1 Describe law of effect using simple examples LO 3.10.2 Describe reinforcement as used in behavioural management LO 3.10.3 Describe positive and negative reinforcers using examples D 11 Equity/organizational justice LO 3.11.1 Explain organizational justice and three components of the same, namely, distributive, procedural and interactional 12 Expectancy LO 3.12.1 Describe using simple examples the Expectancy theory and its three elements, namely, expectancy, instrumentality and valence Leadership, negotiation and conflicts Type of leadership LO 4.1.1 Discuss different leadership styles, namely, free-rein, engaging, participative, task oriented and autocratic Theories of leadership LO 4.2.1 Discuss using simple examples different theories of leadership, namely, trait theories, Blake and Mouton theory, situational and contingency theories Roles, activities, skills of leaders LO 4.3.1 Discuss leadership roles and activities LO 4.3.2 Identify Skills needed for © Emile Woolf International ix The Institute of Chartered Accountants of Pakistan Business management and behavioral studies Syllabus Ref Contents Level Learning Outcome effective leadership Group Dynamics and teamwork - types of groups, group formation, group structure, individual in groups, team work LO 4.4.1 List differences between groups and teams LO 4.4.2 Explain and illustrate balance theory of group formation LO 4.4.3 Identify and describe stages of group development LO 4.4.4 List down the factors that increase and decrease group cohesiveness LO 4.4.5 Explain the ways to make teams more effective Negotiation skills LO 4.5.1 Explain various stages of the negotiation process LO 4.5.2 List five skills of effective negotiator LO 4.5.3 Explain the low risk techniques of negotiation LO 4.5.4 Explain the high risk techniques of negotiation Conflict resolution LO 4.6.1 Discuss the conflict resolution process LO 4.6.2 Explain Intra-individual conflict with model of frustration LO 4.6.3 List some of the physical, psychological and behavioural problems occur due to conflict E Management information systems General system concepts of information technology LO 5.1.1 Demonstrate basic understanding of computer hardware i.e input, output, storage of information and networking LO 5.1.2 Understand the concepts of information technology and information systems LO 5.1.3 Understand the role and types of information systems in business IT-based transaction processing systems LO 5.2.1 Understand data entry, batch processing, online processing and real time -online processing IT-based financial reporting LO 5.3.1 Understand IT based financial © Emile Woolf International x The Institute of Chartered Accountants of Pakistan Business management and behavioural studies SPECIFIC IT-BASED SYSTEMS Section overview  Transaction processing systems  Management information systems  Decision support systems  Executive information systems  Expert systems  Financial reporting systems  Order processing and inventory control systems  Personnel systems  Integrated IT systems  Enterprise resource planning (ERP) 2.1 Transaction processing systems (TPS) Definition: A TPS performs, records and processes routine transactions Finance and accounting TPS The major functions would typically include:  Budgeting  The nominal ledger  Invoicing  Management accounting The system might be split into a number of modules including:  Nominal ledger  Accounts payable  Accounts receivable  Budgeting  Treasury management Human resources TPS The major functions would typically include:  Personnel records  Benefits  Salaries  Labour relations  Training © Emile Woolf International 246 The Institute of C hartere d Accountants of Pakistan Chapter 11: Management information systems The system might be split into a number of modules including:  Payroll  Employee records  Employee benefits  Career path systems (appraisal) 2.2 Management information systems (MIS) Definition: A management information system digests inputted data (distinct pieces of information such as facts, numbers and words) and processes it into useful information A management information system is characterized as follows:  It support structured decisions  It reports on existing operations  An MIS has little analytical capability and is relatively inflexible  MIS has an internal focus  Used to generate regular reports and typically would allow online access to a wide range of users  Will incorporate both current and historical information 2.3 Decision support systems (DSS) Definition: A decision support system is a set of related computer programs and data required to assist with the analysis and decision-making within an organization DSS were initially developed to overcome the rigid nature of management information systems The characteristics of decision support systems include:  DSS assists managers at the tactical level when they are required to make intelligent guesses  A DSS uses formula and equations to enable mathematical modelling  DSS are real-time systems enabling managers to solve problems through queries and modelling  User inputs queries and variables for the model through a user interface  Contains a natural language interpreter for querying the system  The user interface is integrated with data management and modelling software from the key components  Spreadsheet packages can become the tool for the development of a decision support system © Emile Woolf International 247 The Institute of C hartere d Accountants of Pakistan Business management and behavioural studies 2.4 Executive information systems (EIS) Definition: An executive information system is a type of management information system that facilitates and supports senior executives in their decision-making An EIS incorporates both internal and external data and tends to be more forward looking rather than historical-based EIS typically emphasize graphical displays and simple user interfaces with a ‘highlevel’ executive summary styled dash-board Executives can then drill-down into various components of the dashboard to extract more detailed information if required Other characteristics of EIS include:  Helps senior managers to make unstructured decisions with many contributing factors such as price fixing  Tends to be very expensive and real-time  Often limited in use to a small number of senior managers within the business 2.5 Expert systems Definition: An expert system is a computer program that simulates the judgement and behaviour of a human or an organization that has expert knowledge and experience in a particular field Expert systems contain a database of accumulated experience and scenarios as well as a set of rules for applying the knowledge to each particular situation described by the program Examples include legal diagnostics, medical diagnostics, processing a loan application and on a social level, programs that play chess! Expert systems are most effective when the following preconditions exist:  The problem is reasonably well-defined  The expert can define some rules  The problem cannot be solved through conventional transaction processing systems  The expert can be released to focus on more difficult problems  The investment is cost-justified The advantages gained from using an expert system include:  Allows non-experts to make expert decisions  Fast, accurate and consistent advice  Ability to change input details to explore alternative solutions  Reduction in staff costs - less experts required  Improved allocation of human resources experts concentrate on the more complex issues © Emile Woolf International 248 The Institute of C hartere d Accountants of Pakistan Chapter 11: Management information systems  Can become a competitive advantage  Availability potentially 24 hours 365 days per year  Multi-access can deal with many problems at one time However, some disadvantages may exist, such as:  High initial capital expenditure  Technical support required  System does not automatically learn, it has to be constantly updated by experts  User as a non-expert may give inaccurate advice without recognising  Down time - systems failures effect all users  Reliance - probable reduction in basic skills  Possible user resistance for higher level experts 2.6 Financial reporting systems Definition: Financial accounting and reporting Financial accounting and reporting involves:  Maintaining a system of accounting records for business transactions and other items of a financial nature; and  Reporting the financial position and the financial performance of an entity in a set of ‘financial statements’ Many businesses operate a system of recording their business transactions in accounting records This system is called a book-keeping system or ledger accounting system and forms the foundation of the financial reporting system All large businesses (and many small ones) have a book-keeping system for recording the financial details of their business transactions on a regular basis The information that is recorded in the book-keeping system (ledger records) of an entity are also analysed and summarised periodically, typically each year, and the summarised information is presented in financial statements Financial statements provide information about the financial position and performance of the entity Financial reporting systems must be reliable, accurate and complete Access to data entry should be strictly controlled to authorised personnel only Unlike management information systems where there are no formal rules about the presentation of data extracted from the system, financial reporting systems must be capable of extracting and summarizing data that will satisfy strict external reporting requirements This means:  The system must be able to support an audit trail for transactions and manual updates (called journals)  The system must capture all transactions from the transaction processing system © Emile Woolf International 249 The Institute of Chartered Accountants of Pakistan Business management and behavioural studies  Transactions must be categorized correctly so that they will ultimate be extracted and summarised in the correct way within the external financial statements 2.7 Order processing and inventory control systems Definition: Order processing The order processing system should be capable of recording all orders accurately and in a timely fashion For some business such as airlines and hotels the information needs to be updated immediately, whereas for other businesses an end of day update may be sufficient The system will typically be linked to the inventory control system so that the sales person can establish whether the organisation is capable of fulfilling the order received Definition: Inventory control system The objective of the inventory control system is to ensure that the business maintains an appropriate amount of inventory at all times The control system should be able to indicate accurate levels of inventory for all the lines maintained by a business and trigger the ordering of replacement inventory when inventory levels fall to a certain level When the business is involved in manufacturing the inventory control system must ensure that there are enough items in place to allow production to continue smoothly Order processing and inventory control systems typically share the following characteristics:  The system can accurately report the current inventory level at any time  A rule should be associated with each item that will trigger a reorder such as minimum inventory level  The age of the inventory can be tracked This will assist sales managers in identifying ageing stock and employing tactics to reduce it This is particularly important with perishable inventory (e.g food and drink) that could have hygiene as well as commercial considerations to consider  The system should be able to highlight shortages  The system should be able to show individual and total cost of items  The system should maintain supplier details  Delivery dates both inwards and outwards must be maintained to enable the warehouse manager to manage goods inwards and despatch  The location of the inventory should be recorded to ensure it can be found easily and efficiently © Emile Woolf International 250 The Institute of Chartered Accountants of Pakistan Chapter 11: Management information systems 2.8 Personnel systems Definition: The personnel system exists to support the human resources management function in performing its duties of maintaining an appropriate workforce This involves  Recruitment  Selection; and  Staff development and appraisal Furthermore, the system contains a significant amount of sensitive and confidential information meaning there must be strict control around maintaining data security and access to the system The system will typically incorporate a number of components including:    Recruitment  Highlighting internal job vacancies that are available to existing staff  Running external recruitment campaigns and tracking their cost effectiveness Redundancy  Planning and executing voluntary redundancy programs  Planning and executing compulsory redundancies making sure the company follows all the legal requirements Personnel management and control  Maintaining contract of employment details such as salary, holiday entitlement and duties  Family and medical contact details  Employment history  Training records  Training plan  Qualifications and skills  Amount of holiday accrued and taken  Sick leave accrued and taken plus authorised absences such as bereavements  Unauthorized absence  Time off in lieu  Disciplinary record  Bonus and pay history  Other rewards and commendations  Annual appraisal  Goals and objectives © Emile Woolf International 251 The Institute of Chartered Accountants of Pakistan Business management and behavioural studies   Formal checks such as references Personnel management reporting – management will benefit from seeing graph trends and summary reports to help with making decisions on headcount These might include:  Benefits report  Headcount (employee numbers) report  Pay details and total wage expense  Gender and diversity mix information  Age profiling  Tenure profiling  Absence analysis 2.9 Integrated IT systems Definition: An integrated IT system describes the scenario where all modules of the system are linked and function together as a system in a coordinated fashion Integrated finance system An integrated finance system would link a number of underlying modules such as  Accounts payable control  Accounts receivable control  Accruals and prepayments  Bank and cash  Inventory  Purchases  Sales So for example a new sales order would be simultaneously reflected in the accounts receivable, sales and inventory modules Advantages of integrated systems  Offers a more complete view  Enables better informed decisions  Should ultimately lead to a more efficient operation  Which would lead to greater customer satisfaction and hence profitability Disadvantages of integrated systems  Greater risk that if one module fails the whole system could fail  More complex and therefore prone to error  More expensive than standalone systems  May require a greater level of support as the system is likely to need to be bespoke (tailored) specifically to the organisation © Emile Woolf International 252 The Institute of Chartered Accountants of Pakistan Chapter 11: Management information systems 2.10 Enterprise resource planning (ERP) Definition: Enterprise resource planning (ERP) is a cross-functional system driven by an integrated suite of software modules supporting the basic internal processes of a business The system incorporates a real-time view of core business processes such as:  Order processing  Inventory management  Productions Business resources ERP systems track business resources such as:  Cash  Raw materials  Production capacity  Personnel Commitments ERP systems also track the status of commitments such as:  Purchase orders  Employee costs  Customer orders Tracking is permanently updated irrespective of the department that entered the information – hence the term ‘enterprise’ © Emile Woolf International 253 The Institute of Chartered Accountants of Pakistan Business management and behavioural studies © Emile Woolf International 254 The Institute of Chartered Accountants of Pakistan Certificate in Accounting and Finance Business management and behavioural studies I Index a Adair’s 50: 50 rule Adair’s action-centred leadership Ageing population Anisation structure: Mintzberg Anti-collusion regulations Ashridge model Attitude cross-cultural variation Attitude and behaviour c 192 191 57 15 36 182 140 141 142 Carbon footprint 62 Centralisation 95 Change agent 116 Change and organisation culture 110 Client-server computing 239 Closed systems 241 Competition law 36 Competitive factors 65 Competitive rivalry 72 Computer hardware 231 Computer network 239 Computer systems 231 Conflict: resolution 223, 227 sources 223 Consequences of change 109 Constructive feedback and motivation 164 Consumer protection 37 Contingency theory 22 organisation structure 98 Contract law 37 Contrast effects 139 Control systems 242 Co-operatives 78 Corporate culture 123 Corporate culture (Handy) 128 Cultural web (Schein) 124 b Barcodes and EPOS Bargaining power of customers Bargaining power of suppliers Batch processing Belbin: team roles Bennis: leaders as enablers and originators Blake and Mouton’s grid Bonuses Bureaucracy Burns and Stalker © Emile Woolf International 234 72 71 244 204 193 180 164 99 255 The Institute of Chartered Accountants of Pakistan Business management and behavioural studies Culture for management: significance Culture: definition Equity Executive directors Executive information systems Expectancy theory implications Vroom Expert systems Explicit attitudes External relationships External stakeholders Extrinsic rewards 124 123 d Data entry 244 Data protection and security 35 Data protection law 34 Davis and Lawrence 1977 91 Deadlock 220 Dealing with conflict 226 Decision support systems 247 De-layering 60 Demand and supply 51 Demographic patterns 58 Demography 57 Desk-top personal computers (PCs) 232 Digital cameras 234 Distributive bargaining 217 Divisional organisation structure 90 Dorming (adjourning) 208, 209 Downsizing 59 Drucker management theory 12 mission statement 166 © Emile Woolf International 158 157 248 141 96 81 161 f Fayol principles of management Fiedler’s contingency model File servers Financial reporting systems Fiscal policy Five Forces model (Porter) Foreign exchange rates and international payments disequilibrium Formal organisation Forming Four Rs model Freedom of contract Functional (constructive) conflict Functional organisation structure e Economic activity: calculation; expenditure approach Economic cycle Economic policy measures Economic stagnation Economy Effective leadership Effectiveness Efficiency Elastic demand Employment law Enterprise resource planning (ERP) Entrepreneurial organisation Environmental influences Environmental scan 174 80 248 40 41 39 49 44 212 177 212 212 55 32 253 89 29 29 186 239 249 47 69 46 87 207 116 37 225 89 g Gemini 4Rs Goal setting Goals Government economic policy aims Government policy for demographic change 256 116 165 167 41 58 The Institute of Chartered Accountants of Pakistan Index International payments disequilibrium Intra-individual conflict Intrinsic rewards h Halo effect Handy (Corporate culture) Handy’s best fit approach Health and safety law Heifetz: leadership as an activity Hersey and Blanchard: situational leadership theory Herzberg and motivation-hygiene theory (two-factor theory) Hierarchy of needs limitations Maslow Hofstede 138 128 189 33 194 j Job satisfaction Job stress: triggers Johnson and Scholes cultural web value chain 187 156 156 154 130 © Emile Woolf International 144 147 124 68 k Kanter Keyboards Kotter (Leadership) i Implicit attitudes Incentives Incremental change Individual approaches to work Individual behaviour at work Inelastic demand Inflation implications for the distribution of wealth Informal organisation significance Information system/s types role Information technology Input devices Integrated IT systems Integrative bargaining Interest rates: managing Inter-group conflict Internal relationships: centralisation versus decentralisation Internal stakeholders International economic policies International payments International payments and foreign currencies 46 223 161 141 213 107 201 199 55 42 13 233 194 l Law of effect 171 Leadership and adaptive change 195 Leadership style/s 177,184 contingency theories 186 definition 3, 23, 24, 25, 26 qualities 191 trait theories 178 Legal authority 32 Legitimate authority Levers of change 112 Lewin: force field analysis 113 unfreeze, change, re-freeze 114 Likert’s leadership styles 184 Lippitt and White’s leadership styles 178 Lobby groups 38 Local area network (LAN) 240 42 87 87 240 242 243 240 232 252 217 48 223 95 79 49 45 45 257 The Institute of Chartered Accountants of Pakistan Business management and behavioural studies m n Machine bureaucracy 99, 102 Macro-economic factors 39 Macroeconomic policy 39 Macroeconomics 39 Magnetic ink character recognition (MICR) 233 Mainframe 232 Man relations movement of management theory 10 Management by objectives 169 Management information systems 247 Management: classical theories definition modern theories 12 Maslow: the hierarchy of needs 154 Matrix organisation structure 90 Mayo (human relations school) 10 McClelland: motivational needs theory 159 McGregor: Theory X and Theory Y 17 McKinsey’s 7S approach 117 Mechanistic organisation 99 Mendelow’s power/interest matrix 84 Mice, trackballs and similar devices 233 Micro-economic factors 51 Microeconomics 39 Mini-computers 232 Mintzberg 14, 166 Mintzberg and organisation structure 15 Mintzberg’s five building blocks for organisational configurations 101 Mintzberg’s six organisational configurations 102 Mission 166 Mission statement 166 Monetary policy 48 Monitor (display) 236 Monopolies 36 Monopoly pricing 52 Motivation 153, 213 content theories 153 process theories 153 Motivational needs theory (McClellan) 159 Motivation-hygiene theory 156 National economic policies National economy National income growth and inflation Negotiation process skills of an effective negotiator Network servers Networks Non-government organisations Norming Notebooks Not-for-profit organisations © Emile Woolf International 47 40 41 217 217 218 239 239 77 207 232 77 o Objectives 167 Off-line storage 238 Online processing 244 Open systems 241 Operations Research (Management science approach) 19 Optical mark reading (OMR) 233 Order processing and inventory control systems 250 Organic organisation 99 Organisation culture: factors that shape organisation culture 124 Organisation structure/s 77, 88, 107 Organisation type: 77 business organisations 77 distinguishing features 77 non-government 77 not-for-profit 77 public sector 77 Organisational culture 123 Organisational processes 94 Organisational structure divisional 88 Organisational structure functional 89 Organizational justice 174 Ouchi (Theory Z) 16 Output devices 236 Outsourcing 60, 96 258 The Institute of Chartered Accountants of Pakistan Index Scanners and optical character recognition (OCR) Schein three levels of culture Scientific management criticisms underlying principles Secondary storage (external memory) Selective perception Self-efficacy Senior managers Sensation Seven S approach Shareholders SMART Social and demographic factors in the environment Span of control Speakers and headsets Stakeholder conflicts of interest Stakeholder mapping Stakeholder/s: connected definition external internal main Standard form contracts Stereotyping Stewart (bureaucracy) Storage devices Storming Strategic change Strategy implementation Stress Supercomputers Supervision: definition Supranational bodies SWOT analysis System architecture p Paradigm Perception Perceptual problems and distortions Perceptual selectivity Performance-related pay Performing Person culture Personal data Personnel systems PEST analysis Physical environment Planned change (or proactive change) Political and legal influence on business Portable laptops Porter (Five forces model) Power culture Price elasticity of demand Primary storage (internal memory) Printers Project teams Projection Projector Public sector organisations 128 135 138 136 163 208 129 34 251 29 62 107 31 232 69 128 54 237 236 203 139 237 77 r Real time processing Reinforcement theory Reward system and motivation Reward systems Rewards: extrinsic intrinsic Role culture 245 171 162 161 161 161 129 © Emile Woolf International 237 138 170 80 136 117 79 167 57 92 236 86 84 83 79 81 79 83 37 138 237 207 112 88 146 232 32 65 239 t s Sale of goods legislation 233 123 127 6 Tannenbaum and Schmidt’s leadership continuum 37 259 181 The Institute of Chartered Accountants of Pakistan Business management and behavioural studies frictional unemployment regional unemployment seasonal unemployment structural unemployment technological unemployment transitional unemployment Unplanned change (or reactive change) Urwick: Principles of organisations Task culture 129 Taylor (Scientific management) Team approaches to work 201 Team building: role of management 202 Team development 207 Team effectiveness: tools and techniques for building team effectiveness 213 Team formation 207 Team performance: evaluating 212 Team roles 203, 204 Team-building tools 213 Teams 203 effective 211 ineffective 211 Technological factors on working methods 59 Tertiary storage 238 Theory Z (Ouchi) 16 Thomas and Kilmann 226 Threat from potential entrants 70 Threat from substitute products 71 Touch-sensitive screens and touch pads 233 Transaction processing systems 246 Transformational change 107 Triggers for change 107 Tuckman (team development) 207 Tuckman’s analysis 208 107 v Value chain Johnson and Scholes primary secondary Virtual company Virtual organisation Voice date entry (VTE) Vroom: expectancy theory 68 68 69 61 97 234 157 w Weber (bureaucracy) Wide area network (WAN) Work group and a team: difference Work group behaviour Work groups: formal informal Work team: successful Worldwide economic recession u Unemployment Unemployment types cyclical unemployment 44 44 44 44 44 43 43 43 44 240 203 199 200 199 203 45   © Emile Woolf International 260 The Institute of Chartered Accountants of Pakistan ... Accounting and Finance Business management and behavioural studies Management concepts Contents Functions: leadership, management and supervision Classical theories of management Other theories of management. .. behavioural studies S Syllabus objective and learning outcomes CERTIFICATE IN ACCOUNTING AND FINANCE BUSINESS MANAGEMENT AND BEHAVIOURAL STUDIES Objective To equip candidates with the fundamentals of management. .. Certificate in Accounting and Finance Business management and behavioural studies C Contents Page Syllabus objective and learning outcomes v Chapter Management concepts The business environment 27